Will joe be able to get by without any additional funds

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Jolly Joe's Pizza has just come out with a new pizza that Joe is sure will cause sales to double between 2012 and 2013. Using the following worksheet, complete Joe's pro forma financial forecast and answer the related questions.

You may assume that COGS, current assets, and current liabilities will maintain the same percentage of sales as in 2012. Furthermore, you may assume that no new fixed assets will be needed in 2013, and the current dividend policy will be continued in 2013.

Question 1: Will Joe be able to get by without any additional funds needed in 2013? If not, how much will he need

 

2012

 

$ 10,000

4,000

6,000

3,000

3,000

1,000 $ 2,000 $ 0 $ 25,000

15,000

$ 40,000

$ 17,000
3,000
7,000
13,000
$ 40,000

Gross Profit

Fixed Expenses Before-Tax Profit Tax 33.33% Net Profit

Dividends

Current Assets Net Fixed Assets Total Assets

Current Liabilities

Long-Term Debt

Common Stock

Retained Earnings

Total Liabilities and Equity

Reference no: EM132460431

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